USA Statutes : nevada
Title : Title 56 - OTHER FINANCIAL INSTITUTIONS
Chapter : CHAPTER 678 - CREDIT UNIONS
As used in this chapter, unless the
context otherwise requires, the words and terms defined in NRS 678.020
to 678.240 , inclusive, have the meanings ascribed to them
in those sections.
(Added to NRS by 1975, 376; A 1983, 1830; 1985, 784; 1987, 2013)
“Account” means a contract of
deposit of funds between a member and a credit union and includes
deposits, member or share accounts and other like arrangements regardless
of whether they may be characterized as refundable capital investments.
(Added to NRS by 1975, 376)
“Beneficiary” means any person
to whom the deposits of an account are to be paid upon the occurrence of
a specified condition.
(Added to NRS by 1975, 376)
“Board” means the board of directors
of a credit union formed pursuant to the provisions of this chapter.
(Added to NRS by 1975, 376)
“Chairman” means the chairman of
the board of a credit union.
(Added to NRS by 1975, 376)
“Commissioner” means the
Commissioner of Financial Institutions.
(Added to NRS by 1987, 2013)
“Credit union” means a
cooperative, nonprofit corporation, organized for the purposes of
promoting thrift among its members and creating a source of credit for
such members at a fair and reasonable rate of interest.
(Added to NRS by 1975, 376)
“Demand” means a request for
withdrawal or payment in accordance with all conditions of the account
and bylaws of the credit union.
(Added to NRS by 1975, 376)
“Department” means the
Department of Business and Industry.
(Added to NRS by 1975, 376; A 1993, 1896)
“Deposits” means that part of the
savings liability of a credit union which is credited to the account of
the holder thereof.
(Added to NRS by 1975, 377)
“Director” means the Director of
the Department.
(Added to NRS by 1975, 377; A 1993, 1897)
“Dividend” means that part of the
net earnings of an association which is declared payable by the board to
the holders of record of permanent capital stock.
(Added to NRS by 1975, 377)
“Fixed assets” means the real
property which constitutes the premises of a credit union or any of its
offices, and the furniture, fixtures and equipment of the credit union.
(Added to NRS by 1985, 783)
“Immediate family”
includes any relative, by consanguinity or marriage, of a member living
in the member’s household and includes foster and adopted children.
(Added to NRS by 1975, 377)
“Loan officer” means the
officer appointed by the board of directors or by the credit committee to
process all applications for loans from the members of the credit union.
(Added to NRS by 1975, 377)
“Member” means a person who has an
account with a credit union and meets the qualifications for membership
specified in the articles of incorporation and bylaws of the credit union.
(Added to NRS by 1985, 783)
“Merger” means that consolidation
of corporate structures which results in the uniting of substantially all
the assets and liabilities of one state-chartered corporation with those
of another such corporation or with those of a federal corporation.
(Added to NRS by 1975, 377)
1. “Multiple-party account” means:
(a) An account in the name of two or more persons, any one or more
of whom may make withdrawals;
(b) An account in the name of one or more persons as trustee for
one or more beneficiaries;
(c) An account established for deposit of funds of a partnership,
joint venture or other association; or
(d) An account controlled by two or more persons as the duly
authorized agents or trustees for a corporation, unincorporated
association, charitable or civil organization or any trust, except trusts
of deposits evidenced solely by the form of the deposit.
2. At least one party to a multiple-party account shall be a
member of the credit union in which the account is established.
(Added to NRS by 1975, 377)
“Net contribution” means
the sum of all deposits which a party to a multiple-party account has
made added to any dividends or interest due, less all withdrawals. It
includes, in addition, any deposit life insurance proceeds added to the
account because of the death of a party whose net contribution is in
question.
(Added to NRS by 1975, 377)
“Party” means any person who, by the
terms of the account, has a present right of withdrawal in a
multiple-party account. Unless the context indicates otherwise, it
includes a guardian, conservator-trustee, personal representative,
assignee, an attaching creditor of a party or a trustee. This term does
not include any named beneficiary.
(Added to NRS by 1975, 377)
“Payment” means the withdrawal and
payment of sums on deposit on the directive of a party.
(Added to NRS by 1975, 377)
“Proof of death” means a
death certificate or other statement issued by an appropriate official
which indicates that a named person is deceased.
(Added to NRS by 1975, 377)
“Sums on deposit” means
the balance payable on a multiple-party account including interest,
dividends and any deposit life insurance proceeds added to the account
because of the death of a party.
(Added to NRS by 1975, 377)
“Trust account” means any
account which states that a party is a trustee for one or more identified
persons, including but not limited to minors.
(Added to NRS by 1975, 378)
“Withdrawal” means payment to a
party or a third person pursuant to a directive of a party.
(Added to NRS by 1975, 378)
ADMINISTRATION
The Commissioner shall administer the provisions of this
chapter, subject to administrative supervision by the Director and the
Credit Union Advisory Council. He shall make the decisions and
determinations and adopt regulations which are necessary or reasonably
appropriate to accomplish the purposes of this chapter.
(Added to NRS by 1975, 378; A 1977, 96; 1983, 1830; 1987, 2013)
The Commissioner
shall:
1. Adopt a regulation establishing the minimum surety bond
required of credit unions in relation to the amount of property under
their control.
2. Adopt a regulation that sets forth the records a credit union
must keep and prescribes the period for which those records must be
retained.
3. Maintain the original application of every credit union in a
permanent file.
4. Maintain for at least 6 years, every report filed by a credit
union with the Division of Financial Institutions.
5. Except as otherwise provided in NRS 678.800 and 678.810 ,
deposit all fees, charges for expenses, assessments and other money which
is collected pursuant to the provisions of this chapter or any regulation
adopted pursuant thereto in the State Treasury pursuant to the provisions
of NRS 658.091 .
6. Prepare copies of articles of incorporation and bylaws
consistent with the provisions of this chapter which may be used by
persons interested in organizing a credit union.
(Added to NRS by 1975, 378; A 1977, 102; 1983, 1328, 1639, 1830,
2015; 1985, 784; 1987, 2013; 1989, 924; 1999, 1452 ; 2003, 3234 )
The Commissioner may:
1. Adopt regulations, subject to the advice and consent of the
Credit Union Advisory Council, establishing chartering, supervisory and
examination fees; and
2. Cause appropriate legal action to be taken in the district
court of any county to secure an injunction or order restraining a
violation of this chapter.
(Added to NRS by 1975, 378; A 1983, 1831; 1987, 2013)
1. Except as provided in subsections 3 and 4, an officer or
employee of the Division of Financial Institutions shall not:
(a) Be directly or indirectly interested in or act on behalf of any
credit union chartered by this state;
(b) Receive, directly or indirectly, any payment from any such
credit union;
(c) Be indebted to any state credit union;
(d) Engage in the negotiation of loans for others with any such
credit union; or
(e) Obtain credit or services from a state credit union conditioned
upon a fraudulent practice or undue or unfair preference over other
customers.
2. An employee of the Division in the unclassified service of the
State shall not obtain new extensions of credit from a state credit union
while in office.
3. Any officer or employee of the Division of Financial
Institutions may be indebted to a credit union on the same terms as are
available to the public generally upon:
(a) A mortgage loan on his own real property.
(b) A secured installment debt.
(c) An unsecured debt.
4. Any officer or employee of the Division of Financial
Institutions may establish and maintain savings deposits or share
accounts with credit unions to the greatest amount insured, receive
interest on those deposits or shares and borrow money secured by a pledge
of those deposits or shares.
5. If an officer or employee of the Division of Financial
Institutions has a service, a preferred consideration, an interest or a
relationship prohibited by this section at the time of his appointment or
employment, or obtains it during his employment, he shall terminate it
within 120 days after the date of his appointment or employment or the
discovery of the prohibited act.
(Added to NRS by 1983, 1829)
1. In addition to any other requirements set forth in this
chapter, each applicant must submit:
(a) Proof satisfactory to the Commissioner that the applicant:
(1) Has a good reputation for honesty, trustworthiness and
integrity and is competent to transact the business for which the
applicant seeks to be licensed in a manner which protects the interests
of the general public.
(2) Has not made a false statement of material fact on the
application for the license.
(3) Has not committed any of the acts specified in
subsection 2.
(4) Has not had a license issued pursuant to this chapter
suspended or revoked within the 10 years immediately preceding the date
of the application.
(5) Has not been convicted of, or entered a plea of nolo
contendere to, a felony or any crime involving fraud, misrepresentation
or moral turpitude.
(b) A complete set of his fingerprints and written permission
authorizing the Division of Financial Institutions of the Department of
Business and Industry to forward the fingerprints to the Central
Repository for Nevada Records of Criminal History for submission to the
Federal Bureau of Investigation for its report.
2. In addition to any other lawful reasons, the Commissioner may
refuse to issue a license to an applicant if the applicant:
(a) Has committed or participated in any act which, if committed or
done by a holder of a license, would be grounds for the suspension or
revocation of the license.
(b) Has previously been refused a license pursuant to this chapter
or has had such a license suspended or revoked.
(c) Has participated in any act which was a basis for the refusal
or revocation of a license pursuant to this chapter.
(d) Has falsified any of the information submitted to the
Commissioner in support of the application for the license.
(Added to NRS by 2005, 1889 )
In addition to any other lawful reasons, the Commissioner may
suspend or revoke a license if the licensee has engaged in any act that
would be grounds for denying a license pursuant this chapter.
(Added to NRS by 2005, 1890 )
1. A licensee must obtain the approval of the Commissioner before
using or changing a business name.
2. A licensee shall not:
(a) Use any business name which is identical or similar to a
business name used by another licensee under this chapter or which may
mislead or confuse the public.
(b) Use any printed forms which may mislead or confuse the public.
(Added to NRS by 2005, 1890 )
1. For the purpose of discovering violations of this chapter or of
securing information lawfully required under this chapter, the
Commissioner or his duly authorized representatives may at any time
investigate the business and examine the books, accounts, papers and
records used therein of:
(a) Any credit union;
(b) Any other person engaged in an activity for which a license is
required pursuant to the provisions of this chapter; and
(c) Any person whom the Commissioner has reasonable cause to
believe is violating or is about to violate any provision of this
chapter, whether or not the person claims to be within the authority or
beyond the scope of this chapter.
2. For the purpose of examination, the Commissioner or his
authorized representatives shall have and be given free access to the
offices and places of business, files, safes and vaults of such persons.
3. The Commissioner may require the attendance of any person and
examine him under oath regarding:
(a) Any transaction or business regulated pursuant to the
provisions of this chapter; or
(b) The subject matter of any audit, examination, investigation or
hearing.
(Added to NRS by 2005, 1890 )
1. The Credit Union Advisory Council, consisting of five members
appointed by the Governor, is hereby created to consult with, advise and
make recommendations to the Commissioner in all matters pertaining to
credit unions.
2. The Governor shall appoint members who have tested credit union
experience from a list of recommended names submitted by the Nevada
Credit Union League.
3. After the initial terms, members serve terms of 4 years, except
when appointed to fill unexpired terms.
4. The Chairman of the Advisory Council must be elected annually
by and from the members thereof.
5. The meetings of the Advisory Council may be held at such times
and places as the Chairman or Commissioner determines and may be held
regularly at least once every 6 months.
6. Council members are entitled to receive a salary of $60 for
each day’s attendance at a meeting of the Council.
(Added to NRS by 1975; 378; A 1977, 1263; 1981, 71, 1996; 1983,
1449, 1831; 1985, 447; 1987, 2013)
FORMATION
410 to 81.540
, inclusive; perpetual existence.
1. Except for a credit union organized under the Federal Credit
Union Act or a foreign credit union which has been issued a certificate
of authority by the Commissioner, any credit union whose principal
business is to borrow, loan and invest money on behalf of its members and
which issues membership certificates must be incorporated under the
provisions of this chapter. For that purpose, the provisions of NRS
81.410 to 81.540 , inclusive, which are not in conflict with the
provisions of this chapter, apply to such corporations and to the
officers and stockholders thereof, except as otherwise provided in NRS
678.342 to 678.347 , inclusive.
2. A credit union organized under the provisions of this chapter
has perpetual existence, subject to dissolution as provided in this
chapter.
(Added to NRS by 1975, 379; A 1977, 890; 1983, 2015; 1985, 315;
1987, 2014)
1. The Secretary of State shall not issue any certificate of
incorporation to any credit union authorizing it to do business in this
state until the articles of incorporation are approved by the
Commissioner.
2. An amendment to the articles of incorporation may not be filed
by the Secretary of State without the written approval of the
Commissioner.
3. Not less than seven persons who are residents of Nevada, have a
common bond and are of legal age who desire to organize a credit union
under this chapter shall first execute in triplicate an application, upon
forms to be issued by the Commissioner, for permission to organize an
association. The applicants shall submit with or include in their
application:
(a) A copy of the articles of incorporation which must comply with
the provisions of NRS 81.440 except
where those provisions conflict with the provisions of this chapter.
(b) The par value of the shares, which must be $5 or some multiple
thereof.
(c) The names and addresses of the applicants and an itemized
account of the financial condition of the applicants and the proposed
credit union.
(d) The name, which must include the words “credit union,” and the
principal place of business.
(e) Any additional information which the Commissioner may require
to determine the character and responsibility of the applicants and the
need for a credit union in the community to be served.
Ê The incorporators shall submit a set of proposed bylaws to the
Commissioner with their application and the bylaws when approved by the
Commissioner are effective upon filing the articles of incorporation. The
Commissioner shall approve or disapprove the application within 30 days
following its receipt.
4. Every application for permission to organize, as provided for
in this section, must be accompanied by an application fee and a fee
payment to cover expenses attendant upon the investigation required for
approval. The amount of the fees must be established by regulation
adopted by the Commissioner.
5. The subscribers for a credit union charter shall not transact
any business until formal approval of the charter has been received.
(Added to NRS by 1975, 379; A 1977, 890; 1983, 1639, 1831, 2016;
1987, 2014)
1. The articles of incorporation or bylaws may be amended as
provided in the bylaws. Any amendment to the articles of incorporation or
bylaws do not become effective until approved in writing by the
Commissioner.
2. The Commissioner shall not charge any fee for approving
amendments to the articles of incorporation or bylaws of any credit union
organized pursuant to this chapter.
(Added to NRS by 1975, 380; A 1977, 891; 1983, 1832; 1987, 2015)
1. A credit union may maintain, with the approval of the
Commissioner, offices at locations other than its main office if the
maintenance of the offices is reasonably necessary to furnish service to
its members.
2. A credit union may change its principal place of business
within this state upon providing written notice to the Division of
Financial Institutions.
3. A credit union may share office space with one or more credit
unions and contract with a corporation to provide facilities or personnel.
(Added to NRS by 1975, 380; A 1983, 1832; 1987, 2015)
The fiscal year of all credit unions
organized under this chapter shall end on the last day of December.
(Added to NRS by 1975, 380)
FOREIGN CREDIT UNIONS
No credit union
organized under the laws of another state may commence or transact any
business or maintain an office in this state without first obtaining a
certificate of authority from the Commissioner.
(Added to NRS by 1983, 2014; A 1983, 1645; 1987, 2015)
Each application for an
initial certificate of authority submitted by a foreign credit union must
be filed with the Commissioner on a form prescribed by him and must
include:
1. A copy of the instrument or authority by which the credit union
was created and a copy of its bylaws.
2. A statement of its membership, if not contained in its bylaws.
3. A copy of the most recent report submitted by the credit union
to the authorized officer of the state in which it was organized.
4. Any other information required by the Commissioner.
5. The Commissioner shall consider an application to be withdrawn
if the Commissioner has not received all information and fees required to
complete the application within 12 months after the date the application
is first submitted to the Commissioner or within such later period as the
Commissioner determines in accordance with any existing policies of joint
regulatory partners. If an application is deemed to be withdrawn pursuant
to this subsection or if the applicant otherwise withdraws the
application, the Commissioner may not issue a license to the applicant
unless the applicant submits a new application and pays any required fees.
(Added to NRS by 1983, 2014; A 1983, 1646; 1987, 177, 2015; 2005,
1890 )
1. The Commissioner shall charge and collect a fee of not more
than $1,000 for an initial investigation from each foreign credit union
which applies for certification. The fee is not refundable. An annual fee
of not more than $1,000 must be paid by each foreign credit union for its
initial office and not more than $200 for each branch office. Costs for
additional examinations and investigations must be paid by the credit
union at an hourly rate deemed reasonable by the Commissioner.
2. The Commissioner shall by regulation determine the amount of
the fees required pursuant to this section.
(Added to NRS by 1987, 177; A 2005, 1891 )
The
Commissioner shall issue a certificate of authority to a foreign credit
union if he is satisfied that:
1. The members of the credit union to be served in this state are
adequately protected by any form of security which is comparable to that
required of credit unions organized under the provisions of this chapter.
2. The officer who supervises the credit union in the state in
which it was organized has authorized it to do business in Nevada and
agrees to furnish, upon request, copies of reports relating to the credit
union.
3. The members to be served in this state have a need for the
service and adequate service is not available through existing credit
unions.
4. A resident agent has been designated.
5. The state in which the credit union was organized issues
comparable authorization to credit unions organized under the provisions
of this chapter.
(Added to NRS by 1983, 2014; A 1983, 1646; 1985, 784; 1987, 2015)
A foreign
credit union which has been issued a certificate of authority shall:
1. Serve its members in this state in accordance with its bylaws
and the laws of the state in which it was organized, except where those
laws conflict with the provisions of this chapter.
2. File with the Commissioner a copy of its annual report at the
time it files a similar report with the officer of the state in which it
was organized.
(Added to NRS by 1983, 2014; A 1983, 1646; 1987, 2016)
A foreign credit union which has been issued a
certificate of authority may apply to the Commissioner for a certificate
of authority to open one or more branch offices in this state. Such an
application must be made on a form prescribed by the Commissioner.
(Added to NRS by 1987, 177)
The Commissioner may:
1. Examine the records of any foreign credit union which holds a
certificate of authority issued by the Commissioner at any time he deems
necessary.
2. Revoke a certificate of authority issued to a credit union if
he finds that the credit union has violated any provision of this chapter
or the regulations of the Commissioner.
(Added to NRS by 1983, 2015; A 1983, 1647; 1987, 2016)
The provisions of chapter 80 of NRS which are not in conflict with the provisions
of this chapter apply to any foreign credit union which holds a
certificate of authority to transact business or maintain an office in
this State.
(Added to NRS by 1983, 2015)
DIRECTORS, OFFICERS AND COMMITTEES
1. The business affairs of a credit union shall be directed by an
odd-numbered board of not fewer than five directors to be elected at the
annual meetings by and from the members, and an audit and credit
committee if appointed by the board. The persons designated in the
articles of incorporation shall be the first directors.
2. All members of the board and such committees shall hold office
for such terms as the bylaws may provide.
3. Vacancies in the board of directors shall be filled by vote of
the members at the annual meeting or at a special meeting called for that
purpose. The board may fill any vacancies occurring in the board until
successors elected at the annual meeting or special meeting have
qualified. The board shall also fill vacancies in the credit and audit
committees.
(Added to NRS by 1975, 380)
1. The board of directors is responsible for the general direction
of the affairs, funds and records of the credit union and shall meet as
often as necessary to accomplish their duties, but not less than once a
month.
2. The board may appoint an executive committee of not less than
three directors who may be authorized, by a majority vote of the whole
board, to act for the board subject to any conditions or limitations the
board may prescribe.
(Added to NRS by 1975, 380)
The directors of a credit
union shall:
1. Purchase a blanket fidelity bond in accordance with the
regulations of the Commissioner which provides the credit union with
protection against losses from misappropriation, defalcation in breach of
trust, negligence, acts of God or nature, fire, burglary, robbery or
other cause over which the bonded officers, employers and agents had no
control;
2. Declare dividends in the manner prescribed in the bylaws;
3. Determine the interest rate to be charged on loans and paid on
deposits;
4. Limit the number of shares and the amount of deposits which may
be owned by any member;
5. Establish the compensation of all employees and officers;
6. Establish the maximum secured and unsecured loan which may be
made to any one member;
7. Designate a depository or depositories for the money of the
credit union;
8. Suspend or remove any member who fails to perform or
negligently performs his assigned duties;
9. Establish compensation to be paid any employee, officer or
other persons performing services on behalf of the credit union;
10. Determine from time to time the interest rate, consistent with
the provisions of this chapter, which will be charged on loans; and
11. Authorize interest refunds to members from income earned and
received in proportion to interest paid by them on such classes of loans.
Such refunds are subject to conditions imposed by the board.
(Added to NRS by 1975, 380; A 1983, 1833; 1987, 2016)
The directors may:
1. Act upon applications for membership or appoint membership
officers from the members of the credit union to act upon membership
applications subject to conditions imposed by the board. If membership
officers are appointed they shall submit at each board meeting a list of
approved or pending applications for membership.
2. Invest surplus funds or designate an officer or committee to be
responsible for making investments subject to rules and procedures
established by the board of directors.
3. Authorize the employment of persons necessary to carry on the
business of the credit union.
4. Authorize the conveyance of property.
5. Borrow or lend money to carry on the functions of the credit
union.
6. Appoint any special committees which the board feels necessary
to carry on the business of the credit union.
7. Perform or authorize any action not inconsistent with this
chapter and not specifically reserved by the bylaws for the members.
8. Employ a general manager to be in charge of operations or, in
lieu thereof, designate the treasurer to act as general manager and be in
active charge of the affairs of the credit union.
9. Amend the bylaws of the credit union.
(Added to NRS by 1975, 381)
1. The board may appoint an audit committee to make an annual
audit of the financial records of the credit union and any interim audits
as may be deemed necessary by the board or as may be directed by the
Commissioner. A copy of the report must be submitted to the board and the
Commissioner and a summary presented to the members at the next annual
meeting.
2. The audit committee may by unanimous vote suspend any director,
officer or member of the credit union following an audit, for any
violation of this chapter, the charter or bylaws or for any other
practice which the audit committee deems to be unsafe or unauthorized. In
such cases, the audit committee shall call a special meeting of the
members not less than 7 nor more than 21 days following the suspension
and the suspension must be ratified or overturned by the members.
3. Any member of the audit committee may be suspended by the board
for the same reasons and in the same manner as provided in subsection 2.
4. The audit committee may by a majority vote call a special
meeting of the members to consider any violation of this chapter, the
charter or bylaws or any practice of the credit union deemed by the audit
committee to be unsafe or unauthorized.
5. The board of directors or the audit committee may employ the
services of a certified public accountant or a registered public
accountant to complete the necessary audit of the records of the credit
union.
(Added to NRS by 1975, 381; A 1981, 1813; 1983, 1640, 1833, 2016;
1987, 2017)
1. The board may appoint a:
(a) Credit committee consisting of an odd number of members of the
credit union, but not less than three members; or
(b) Loan officer.
2. If a credit committee is appointed by the board, it shall hold
such meetings as the business of the credit union may require but it
shall meet at least once a month to consider applications for loans. A
loan may not be made unless it is approved by a majority of the members
of the committee who are present at the meeting at which the application
is considered.
3. The credit committee may appoint a loan officer from among its
members and delegate to him the power to approve loans. Only one member
of the credit committee may be appointed as loan officer or assistant
loan officer.
4. If a loan is not approved by a loan officer, the application
for the loan must be reviewed by the credit committee or the board of
directors, whomever appointed the loan officer. All the members of the
credit committee or the board present at the review must approve the
application before the loan may be made.
5. For purposes of internal control, a loan officer may not
disburse funds of the credit union for any loan which has been approved
by him in his capacity as loan officer.
(Added to NRS by 1975, 382; A 1983, 2017)
If the Commissioner notifies the board in writing that
he has information that any director, officer or employee of a credit
union is failing in the performance of his duties, the board shall meet
and consider such matter forthwith. The Commissioner must have notice of
the time and place of the meeting. If the board of directors finds the
Commissioner’s objection to be well founded, such director, officer or
employee shall be removed immediately.
(Added to NRS by 1975, 382; A 1983, 1834; 1987, 2017)
1. At the organizational meeting and within 30 days following each
annual meeting, the directors shall elect, from their own number, the
executive officers of the corporation. The officers must be designated as:
(a) Chairman of the board;
(b) Vice chairman of the board;
(c) Treasurer; and
(d) Secretary.
Ê The treasurer and secretary may be the same person.
2. The treasurer or general manager shall give a fidelity bond
with good and sufficient surety in an amount and character to be
determined by the board in compliance with regulations prescribed by the
Commissioner.
3. Each officer shall serve a term of 1 year or until such time as
successors are chosen and have qualified.
4. The duties of each office must be as prescribed in the bylaws
of the credit union.
(Added to NRS by 1975, 382; A 1983, 1834; 1987, 2017)
Within 30 days following the election of the executive officers, the
secretary shall submit to the Commissioner a list of the names and
addresses of the directors, officers and committee members who have been
elected or appointed.
(Added to NRS by 1975, 383; A 1983, 1834; 1987, 2018)
Directors and officers of an association shall be deemed to stand in a
fiduciary relation to the credit union and shall discharge the duties of
their respective positions in good faith and with the diligence, care and
skill which ordinary, prudent persons would exercise under similar
circumstances in similar positions.
(Added to NRS by 1975, 383; A 1997, 1623)
1. A director or committee member may not be compensated for his
services except that he may be provided reasonable life, health, accident
and similar insurance protection.
2. Any member of the credit union may be reimbursed for necessary
expenses incidental to the performance of credit union business. All such
expenses shall be approved by the board.
3. Subsection 1 does not apply to officers of the credit union who
also serve as members of the board or a committee.
(Added to NRS by 1975, 383)
POWERS AND PRIVILEGES
Every credit union organized under the provisions of this
chapter:
1. Has all the powers granted by NRS 81.500 that are not inconsistent with the provisions
of this chapter and in addition thereto, the powers enumerated in NRS
678.470 to 678.500 , inclusive; and
2. May exercise any authority and perform all acts that a federal
credit union may exercise or perform, with the consent and written
approval of the Commissioner. The Commissioner may, by regulation, waive
or modify a requirement of Nevada law if the corresponding requirement
for federal credit unions has been or is eliminated or modified.
(Added to NRS by 1975, 386; A 2001, 2050 )
A credit union may, subject to the regulations or
approval of the Commissioner:
1. Receive from its members or from the members of another credit
union deposits which are payable on demand and honor requests for
withdrawals in the form of checks or drafts.
2. Receive deposits from the State Treasurer which are payable on
demand pursuant to the provisions of chapter 356 of NRS.
3. Borrow from any source in accordance with the policy
established by the board of directors and discount and sell any eligible
obligations.
4. Sell all or any part of its assets or purchase all or any part
of the assets of another credit union.
(Added to NRS by 1975, 386; A 1981, 1368; 1983, 1835; 1987, 2018)
A credit union may:
1. Require, at the discretion of the directors, the payment of an
entrance fee or annual membership fee of any person admitted to
membership;
2. Collect, receive and disburse moneys and charge a fee for
services rendered in connection with the sale of negotiable checks, money
orders and other money-type instruments and for such other purposes as
may provide benefit or convenience to its members; and
3. Assess charges to members in accordance with the bylaws for
failure to promptly meet their obligations to the credit union.
(Added to NRS by 1975, 387)
A credit union may:
1. Hold membership in other credit unions organized under this
chapter, in the Nevada Credit Union League and in other organizations
composed of credit unions;
2. Perform such tasks and missions as may be requested by the
Federal Government, the State of Nevada or any agency or political
subdivision thereof, including, without limitation, a city, county or
school district, when approved by the board of directors and not
inconsistent with the provisions of this chapter;
3. Act as fiscal agent for and receive deposits from the Federal
Government, the State of Nevada or an agency or political subdivision
thereof, including, without limitation, a city, county or school
district; and
4. Perform trust services for its members, including the trust
estates of deceased members, and act as a custodian of qualified pension
funds of self-employed individuals under the provisions of 26 U.S.C. §§
861 et seq.
(Added to NRS by 1975, 387; A 1999, 1453 )
A credit union may:
1. Contribute to, support or participate in any nonprofit service
facility whose services will benefit the credit union or its membership;
and
2. Make donations or contributions to any nonprofit civic,
charitable or community organization as authorized by the board of
directors.
(Added to NRS by 1975, 387)
MEMBERSHIP; ACCOUNTS
1. The membership of a particular credit union shall be limited to
the subscribers to the articles of incorporation and such other persons
who have:
(a) The common bond set forth in the bylaws;
(b) Paid the entrance fee provided in the bylaws;
(c) Subscribed for one or more shares and have paid the initial
installment thereon; and
(d) Complied with other requirements specified in the articles of
incorporation or bylaws.
2. The common bond required for membership in credit unions
organized under the provisions of this chapter may include, but are not
limited to persons who:
(a) Have a similar occupation, association or interest;
(b) Reside within an identifiable neighborhood, community or rural
district; or
(c) Are employed by the same employer,
Ê and members of the immediate families of such persons.
3. Any member of a credit union who loses the bond that is
characteristic of all other members may be permitted to retain his
membership in the credit union at the discretion of the board of
directors.
(Added to NRS by 1975, 383)
1. Shares may be issued to and deposits received from a minor and
such minor may withdraw the shares and deposits, including the dividends
and interest thereon. For purposes of making deposits, share investments
and withdrawals a minor shall be deemed of legal age.
2. A minor under 16 years of age is not entitled to vote in the
meeting of the members either personally or through his parent or
guardian. A person may not become a director until he has reached the age
of majority.
(Added to NRS by 1975, 383)
1. Shares may be subscribed to, paid for and transferred in such
manner as the bylaws may prescribe. A certificate shall not be issued to
denote ownership of a share in a credit union.
2. The credit union may impress a lien on the shares, deposits,
accumulated dividends or interest of a member in his individual, joint or
trust account for any sum due the credit union from such member or for
any loan endorsed by him.
3. If the losses of any credit union, resulting from a
depreciation in value of its loans or investments or otherwise, exceed
its undivided earnings and reserve fund so that the estimated value of
its assets is less than the total amount due the shareholders, the credit
union may, by a majority vote of the entire membership, order a reduction
in the shares of each of its shareholders to divide the loss
proportionately among the members. If thereafter the credit union
realizes from such assets a greater amount than was fixed by the order of
reduction, such excess shall be divided among the shareholders whose
assets were reduced, but only to the extent of such reduction.
(Added to NRS by 1975, 387)
The
real property and any tangible personal property owned by a credit union
organized pursuant to this chapter or any other provision of law is
subject to taxation to the same extent as other similar property is taxed.
(Added to NRS by 1975, 394; A 1985, 1182)
1. The annual meeting and any special meetings of the members of
the credit union shall be held at the time and place and in the manner
indicated in the bylaws.
2. A member may not vote by proxy, but a society, association,
copartnership or corporation having membership in the credit union may be
represented and vote by one of its members or shareholders if such person
has been fully authorized by the governing body of the society,
association, copartnership or corporation to represent it.
3. At all meetings a member has but one vote irrespective of his
share holdings.
(Added to NRS by 1975, 386)
1. A credit union may receive savings deposits from its members,
subject to such conditions and such return as may be established by the
board.
2. Christmas clubs, vacation clubs and other thrift accounts may
be operated in accordance with the provisions of the bylaws.
(Added to NRS by 1975, 383)
1. A credit union may enter into multiple-party accounts to the
same extent that they may enter into single-party accounts. Any
multiple-party account may be paid, on demand, to any one or more of the
parties unless the terms of the account expressly stipulate that joint
signatures are required.
2. A credit union is not required to inquire as to the source of
funds received for deposit to a multiple-party account or to inquire as
to the proposed application of any sum withdrawn from an account.
3. A multiple-party account may be created with any person
designated by the credit union member, but a joint tenant shall not be
permitted to vote, obtain loans or hold office unless he is a qualified
member.
(Added to NRS by 1975, 385)
1. The presumptions created by NRS 678.580 to 678.610 ,
inclusive, concerning beneficial ownership as between parties, or as
between parties and beneficiaries, of multiple-party accounts are
relevant only to controversies between these persons, their creditors or
other successors, and do not affect the rights of withdrawal of such
persons as determined by the terms of account contracts. The presumptions
are based upon inferences of the intention of parties to multiple-party
accounts arising from the form of the account and the usual expectations
of people using these accounts. The presumptions are rebuttable by clear
and convincing evidence of a different intention.
2. A presumption of survivorship is not subject to change by will,
but may be rebutted by a written order signed by a party and made during
his lifetime which directs the credit union to change the form of the
account or directs that payment not be made in accordance with the
provisions of the account.
3. Any transfers resulting from the application of these
presumptions are effective by reason of the account contracts involved in
this chapter and are not to be considered as testamentary or subject to
the probate laws.
(Added to NRS by 1975, 384)
1. A multiple-party account which provides that sums on deposit or
in shares may be paid on demand to any one of two or more parties is
deemed to belong to the parties in proportion to their net contributions.
2. In the absence of satisfactory proof of net contributions,
those who are parties to a multiple-party account shall be deemed to be
tenants in common of the deposits.
3. The death of any party to a multiple-party account has no
effect on the beneficial ownership of the account other than to transfer
the decedent’s right to his estate unless the account is a trust or joint
tenancy.
(Added to NRS by 1975, 384)
1. A multiple-party account payable to two or more persons,
jointly or severally, which does not expressly provide that there is not
a right of survivorship, though there is no mention of survivorship or
joint tenancy, is a survivorship account. The right of survivorship
continues between survivors.
2. Where there are two or more survivors, their respective
ownerships shall be in proportion to their previous net contributions
augmented by an equal share for each survivor of any interest the
decedent may have owned in the account immediately before his death, plus
the proceeds of insurance on decedent’s life paid to the account.
(Added to NRS by 1975, 384; A 1977, 806)
1. Except where there is evidence of a trust other than as
provided by the form of the account, the account and any sums withdrawn
therefrom are presumed to belong beneficially to the trustee until his
death. At the death of the trustee or surviving trustee any sums
remaining on deposit are presumed to belong to the person or persons
named as beneficiaries, if living, or the survivor of them if one or more
have died before the trustee. The death thereafter of any beneficiary has
no effect on the equal ownership of all who survived the trustee, as
survivorship is not presumed to attend the relationship of several
beneficiaries who survive a trustee. If no beneficiary survives the
trustee the sums are presumed to belong to the estate of the trustee or
the last trustee to die.
2. If two or more parties are named as trustees on the account,
and there is no evidence of trust except as provided by the form of the
account, the account is presumed to be a survivorship account between
trustees.
(Added to NRS by 1975, 384)
1. Except for payments made by a credit union after receipt of
written notice from a party who has a present right of withdrawal to the
effect that withdrawals in accordance with the terms of the account
should not be permitted, any payments made pursuant to NRS 678.630 and 678.640
discharges the credit union from all claims for amounts so paid
regardless of whether or not the payment was consistent with the
beneficial ownership between parties, beneficiaries or their successors.
2. If a party to a multiple-party account gives written notice to
a credit union that withdrawals in accordance with the terms of the
account should not be permitted, unless the notice is withdrawn by such
party his death does not permit withdrawal under the terms of the account
and the personal representative or heirs of the decedent must concur in
any demand for withdrawal by any other party.
(Added to NRS by 1975, 385)
1. Any account payable to a trustee for another person may be paid
to the trustee on demand.
2. Unless a credit union has received written notice of the terms
of any trust other than the form of the account, payment may be made to
the:
(a) Personal representative or heirs of a deceased trustee if proof
of death is presented to the credit union showing that the decedent was
the survivor of all other persons named on the account either as trustee
or beneficiary; or
(b) Beneficiary upon presentation to the credit union of proof of
death showing that such beneficiary or beneficiaries survived all persons
named as trustees.
3. The protection provided a credit union in subsections 1 and 2
has no bearing on the rights of parties in disputes between themselves or
their successors concerning the beneficial ownership of funds in, or
withdrawn from, multiple-party accounts.
(Added to NRS by 1975, 385)
1. Except as provided in subsection 2, if a multiple-party account
does not include a condition requiring joint signatures for withdrawals a
credit union may pay any sum in such account on the demand of any party
without regard to whether any other party is incompetent or deceased at
the time the payment is demanded.
2. If the account is deemed to be a survivorship account pursuant
to NRS 678.600 , payment may not be made
to the personal representative or heirs of a deceased party unless proof
of death is presented to the credit union showing that the decedent was
the last surviving party.
(Added to NRS by 1975, 386)
Without qualifying any other statutory right to setoff or lien and
subject to any contractual provision, when a party to a multiple-party
account is indebted to a credit union, the credit union has a right to
setoff against the entire amount of the account.
(Added to NRS by 1975, 386)
RESERVES; DIVIDENDS
1. Before the payment of any dividend, the gross earnings of the
credit union must be determined. From the gross earnings a regular
reserve against losses must be set aside according to the following
schedule:
(a) Until the regular reserve equals 7.5 percent of the outstanding
loans and risk assets, all credit unions with assets of $500,000 or less
shall withhold 10 percent of the gross earnings. Thereafter, 5 percent of
the gross income must be withheld until the regular reserve reaches 10
percent of the outstanding loans and risk assets.
(b) Whenever a credit union has assets of more than $500,000 and
has been in operation for at least 4 years, it shall maintain its regular
reserve as follows:
(1) Until the regular reserve equals 4 percent of the
outstanding loans and risk assets, the credit union shall withhold 10
percent of its gross earnings.
(2) Thereafter, until the regular reserve equals 6 percent
of its outstanding loan and risk assets, the credit union shall withhold
5 percent of its gross earnings.
(c) Whenever the regular reserve falls below the required levels,
it must be replenished by regular contributions sufficient to maintain
the regular reserve at the levels required by paragraphs (a) and (b).
2. The regular reserve belongs to the credit union and must not be
distributed except on liquidation of the credit union or in accordance
with a plan approved by the Commissioner.
(Added to NRS by 1975, 387; A 1977, 891; 1983, 1641, 1835, 2018;
1987, 2018)
In addition to regular reserve,
special reserves to protect the interest of members must be established
when:
1. Required by regulations issued by the Commissioner; or
2. Directed by the board of the credit union.
(Added to NRS by 1975, 388; A 1983, 1835; 1987, 2019)
For the purpose of
establishing the reserves required by NRS 678.670 and 678.680 ,
all assets except the following are considered risk assets:
1. Cash on hand;
2. Deposits or shares in federal or state banks, savings and loan
associations and credit unions;
3. Assets which are insured by, fully guaranteed as to principal
and interest by, or due from the United States Government, its agencies,
the Federal National Mortgage Association or the Government National
Mortgage Association;
4. Loans to other credit unions;
5. Loans to members of the credit union which are fully secured by
the shares of the member applying therefor;
6. Loans to students insured under the provisions of the Higher
Education Act of 1965, 20 U.S.C. §§ 1071 et seq., or similar state
insurance programs;
7. Loans insured under the National Housing Act, as amended, 12
U.S.C. § 1703, by the Federal Housing Administration;
8. Shares or deposits in central credit unions organized under the
provisions of NRS 678.850 , or of any
other state law or the Federal Credit Union Act of 1934, as amended, 12
U.S.C. §§ 1751 et seq.;
9. Common trust investments which deal in investments authorized
by this chapter;
10. Prepaid expenses;
11. Accrued interest on nonrisk investments;
12. Furniture and equipment;
13. Land and buildings; and
14. A deposit for insurance for members’ accounts required
pursuant to subsection 3 of NRS 678.750 .
(Added to NRS by 1975, 388; A 1981, 1814; 1999, 1453 )
1. The board may, after provision for the required reserves,
declare a dividend to be paid from the remaining net earnings at a rate,
interval and upon such shares as they determine. Dividends shall be paid
on all paid-up shares outstanding at the close of the period for which
the dividend is declared.
2. Shares which become fully paid-up during such dividend period
and are outstanding at the close of the period are entitled to a
proportional part of such dividend.
3. Dividend credit for a month may be accrued on shares which are
or become fully paid up during that month.
(Added to NRS by 1975, 388)
LOANS; INVESTMENTS
1. A credit union may make loans to members in accordance with the
provisions of the bylaws upon receipt of approval by the credit committee
or loan officer at a rate of interest agreed upon by the credit union and
member.
2. Every application for a loan must be made in writing upon a
form furnished by the credit union which has been approved by the board.
The application must include the purpose for which the loan is desired
and the security, if any, offered.
3. A loan must not be made to any member in an aggregate amount in
excess of 10 percent of the credit union’s unimpaired capital and surplus.
4. A credit union may participate with other credit unions,
corporations or financial institutions in making loans to credit union
members.
5. A member may receive a loan in installments or in one sum and
may pay the whole or any part of his loan on any day on which the office
of the credit union is open for business.
(Added to NRS by 1975, 389; A 1981, 1596)
1. The credit committee or loan officer may approve, at his own
discretion or upon application by a member, an extension of the maximum
credit any member had previously been allowed. If an extension of credit
is permitted, applications for loans within the credit limitation need no
further consideration so long as the aggregate obligation of the member
does not exceed the credit limit.
2. The credit committee or loan officer shall, at least once each
year, review all extensions of credit and any extension of credit shall
expire if the member becomes more than 90 days delinquent in his
obligations to the credit union.
(Added to NRS by 1975, 390)
1. A credit union may make loans to its directors and to members
of its committees, except that any loan or aggregate of loans to any one
director or member of a committee which is more than $30,000 plus pledged
shares must be approved by the board.
2. A credit union may permit its directors and members of its
committees to act as guarantor or endorser of loans to other members,
except that when such a loan standing alone or when added to any
outstanding loan to the guarantor is more than $30,000, approval of the
board is required.
(Added to NRS by 1975, 390; A 1983, 2018; 1999, 1454 )
1. In addition to generally accepted types of security, the
endorsement of a note by a guarantor or assignment of shares or wages, in
a manner consistent with the laws of this state, shall be deemed security
within the meaning of this chapter.
2. The credit committee or loan officer, subject to the provisions
of this chapter and the bylaws, is responsible for determining the
adequacy of security for any loans.
(Added to NRS by 1975, 390)
1. A credit union may purchase insurance on the lives of its
members in an amount equal to their respective shares, deposits and
balances on a loan or any of them.
2. A credit union may enter into cooperative marketing
arrangements for its members covering such services as group life
insurance, coverage for temporary disability, plans for health and
accident and such other programs which are demonstrated to be in the
interest of improving the economic and social conditions of the credit
union’s members.
3. A credit union must apply to the Commissioner for approval of a
plan of insurance for members’ accounts, either pursuant to the Federal
Credit Union Act of 1934, as amended, (12 U.S.C. §§ 1781 et seq.), or
under a contract of insurance issued by an insurer, which must be
approved by the Commissioner and the Commissioner of Insurance pursuant
to NRS 678.755 . The issuance of such a
contract is not transacting insurance under title 57 of NRS.
4. The Commissioner shall make available reports of the financial
condition of credit unions, reports of examinations made pursuant to NRS
678.790 and any other reports that may
be required by the insurer and deemed appropriate by the Commissioner.
(Added to NRS by 1975, 389; A 1981, 1814; 1983, 1836; 1985, 785;
1987, 2019)
1. In determining whether a private insurer is acceptable to issue
a contract for the insurance of deposits, the Commissioner and the
Commissioner of Insurance must consider:
(a) The value of the insurer’s capital.
(b) The ratio of the insurer’s assets, including reinsurance, which
are readily available to cover any losses incurred by depositors, to its
insured deposits. This ratio must be adequate to reimburse depositors for
any losses which they may incur and may not be less than the ratio
maintained by the share insurance fund established under the Federal
Credit Union Act of 1934, as amended, (12 U.S.C. §§ 1781 et seq.).
(c) The qualifications of the directors, officers and managers of
the insurance company.
(d) The insurer’s articles of incorporation and its bylaws and all
amendments thereto.
(e) The insurer’s policies for investments.
(f) The form of all insurance contracts entered into by the
insurer, including contracts for reinsurance.
(g) The insurer’s requirements for premiums or deposits.
(h) The insurer’s policies for the management of risk.
(i) Such other considerations as the Commissioner may provide by
regulation which are necessary to carry out the provisions of this act.
2. The Commissioner and the Commissioner of Insurance shall not
approve a contract of insurance unless the protection afforded thereby to
the depositors is substantially equivalent to the protection afforded by
the Federal Credit Union Act of 1934, as amended, (12 U.S.C. §§ 1781 et
seq.) to the depositors.
3. After a private insurer obtains the approval of the
Commissioner and the Commissioner of Insurance, the Commissioner, after
consultation with the Commissioner of Insurance may, for cause, require
the insurer to establish and maintain for such a time as the Commissioner
may require, a reserve, in cash or United States treasury bills or notes,
in an amount fixed by the Commissioner. If required, the reserve must be
kept in an account approved by the Commissioner in a federally insured
financial institution located in this state.
(Added to NRS by 1985, 783; A 1987, 2019)
Money not used in loans to
members may be invested in:
1. Securities, obligations, participations or other instruments of
or issued by or fully guaranteed as to principal and interest by the
United States of America or any agency thereof or in any trust or trusts
established for investing directly or collectively in these instruments;
2. Obligations of this state or any political subdivision thereof,
including, without limitation, a city, county or school district;
3. Certificates of deposit or passbook type accounts issued by a
state or national bank, mutual savings bank or savings and loan
association;
4. Loans to or shares or deposits of other credit unions as
permitted by the bylaws;
5. Capital shares, obligations or preferred stock issues of any
agency or association organized either as a stock company, mutual
association or membership corporation if the membership or stockholdings,
as the case may be, of the agency or association are confined or
restricted to credit unions or organizations of credit unions, and the
purposes for which the agency or association is organized are designed to
service or otherwise assist credit union operations;
6. Shares of a cooperative society organized under the laws of
this state or the United States in a total amount not exceeding 10
percent of the shares, deposits and surplus of the credit union;
7. Capital stock and other securities of a corporation for
economic revitalization and diversification organized under the
provisions of chapter 670A of NRS, if the
credit union is a member of the corporation, and to the extent of its
loan limit established under NRS 670A.200 ;
8. Stocks and bonds of United States corporations to a maximum of
5 percent of unallocated reserves, except that such an investment must be
limited to stocks or bonds yielding income which are approved by the
Commissioner;
9. Loans to any credit union association, national or state, of
which the credit union is a member, except that such an investment must
be limited to 1 percent of the shares, capital deposits and unimpaired
surplus of the credit union; and
10. Negotiable obligations of federal or state banks.
(Added to NRS by 1975, 389; A 1981, 1815; 1983, 1280, 1641, 1836;
1987, 2020; 1989, 1675; 1999, 1454 )
A credit
union must not invest in fixed assets without the prior approval of the
Commissioner if the aggregate value of the credit union’s existing fixed
assets exceeds 7 percent of its total assets.
(Added to NRS by 1985, 783; A 1987, 2021)
RECORDS AND REPORTS; EXAMINATIONS
Every credit union organized
under this chapter shall submit an annual financial report for the
calendar year to the Commissioner on or before the 1st day of February on
forms supplied by him for that purpose.
(Added to NRS by 1975, 390; A 1983, 1328, 1837; 1987, 2021)
1. The Commissioner shall make a thorough examination of and into
the affairs of each credit union organized under the provisions of this
chapter, as often as the Commissioner may deem necessary, but at least
once within each 18-month period. In lieu thereof, the Commissioner may
accept any or all of a report of an examination of a credit union made by
a federal regulatory agency. If the Commissioner accepts any part of such
a report in one 18-month period, he shall examine the credit union to
which the report pertains in the succeeding 18-month period. For the
purpose of performing the examination, the Commissioner may:
(a) Subpoena witnesses and documents;
(b) Administer oaths; and
(c) Compel the giving of testimony.
2. The report of the examination must contain comments to the
members relative to the management of the affairs of the credit union and
the general condition of the assets. Within 30 days following the receipt
of the report, the directors shall call a general meeting of key
personnel to consider matters contained in the report.
3. The Commissioner shall forward a copy of the report to the
chairman of each credit union within 30 days after it is completed. The
board of directors shall inform the members of the credit union of its
general condition at the next annual meeting.
4. For each examination the credit union shall pay a fee based on
the rate established pursuant to NRS 658.101 .
5. The board of directors may engage a certified public accountant
to perform such an examination in lieu of the Commissioner. In such
cases, the examination must be equivalent to the type of examination made
by the Commissioner and the expense must be borne by the credit union
being inspected.
6. The Commissioner shall determine whether an examination
performed by an accountant pursuant to subsection 5 is equivalent to an
examination conducted by the Commissioner. The Commissioner may examine
any area of the operation of a credit union if the Commissioner
determines that the examination of that area is not equivalent to an
examination conducted by the Commissioner.
(Added to NRS by 1975, 391; A 1983, 2018; 1987, 2227; 1989, 1676;
2005, 1891 )
Each credit union shall pay the assessment
levied pursuant to NRS 658.055 and
cooperate fully with the audits and examinations performed pursuant
thereto.
(Added to NRS by 1987, 827)
MERGER; CONVERSIONS
1. Any credit union may, with the approval of the Commissioner,
merge with another credit union under the existing charter of the other
credit union, pursuant to any plan agreed upon by the majority of the
board of each credit union joining in the merger and approved by the
affirmative vote of:
(a) A majority of the members of the merging credit union present
at a meeting called for that purpose; or
(b) A majority of the members of the merging credit union voting by
mail on the question.
2. After agreement by the directors of each credit union and
approval by the members of the merging credit union, the chairman and
secretary of each credit union shall execute a certificate of merger,
which must set forth:
(a) The time and place of the meeting of the board of directors at
which the plan was agreed upon;
(b) The vote in favor of adoption of the plan;
(c) A copy of the resolution or other action by which the plan was
agreed upon;
(d) The circumstances of the vote in which the members approved the
plan agreed upon, if a vote was required; and
(e) The vote by which the plan was approved by the members, if a
vote was required.
3. A copy of each of the certificates executed pursuant to
subsection 2 and a copy of the plan of merger agreed upon by the credit
unions joining in the merger must be forwarded to the Division of
Financial Institutions for certification and returned to the credit
unions within 30 days.
4. After a merger is effected, all property, property rights and
interest of the merged credit union vest in the surviving credit union
without deed, endorsement or other instrument of transfer, and all debts,
obligations and liabilities of the merged credit union are deemed to be
assumed by the surviving credit union under whose charter the merger was
effected.
5. If the surviving credit union is to be a credit union chartered
in accordance with the laws of this state, the application for approval
of the merger must be accompanied by an application fee in an amount
prescribed by regulation of the Commissioner. The applicant shall also
pay such additional expenses incurred in the process of investigation as
the Commissioner deems necessary. All money received by the Commissioner
pursuant to this subsection must be placed in the Investigative Account
created by NRS 232.545 .
6. The Commissioner shall adopt regulations pursuant to which he
may order any credit union chartered in accordance with the provisions of
this chapter to merge with:
(a) Another credit union chartered in accordance with the
provisions of this chapter; or
(b) A credit union chartered in accordance with the laws of another
state or of the United States, if a majority of the board of that credit
union approves the merger,
Ê when he determines that the merger is in the best interest of the
members of the merging credit union.
7. This section is to be liberally construed to permit a credit
union chartered in accordance with this chapter to merge with a credit
union chartered in accordance with this chapter or any other provisions
of law.
(Added to NRS by 1975, 392; A 1983, 1329, 1642, 1837, 2019; 1987,
2021; 1991, 1816)
1. A credit union chartered in accordance with the laws of this
state may be converted to a credit union chartered in accordance with the
laws of any other state or the laws of the United States, subject to
regulations adopted by the Commissioner.
2. A credit union chartered in accordance with the laws of the
United States or of any other state may convert to a credit union
chartered in accordance with the laws of this state. To effect such a
conversion, a credit union must comply with all the requirements of the
authority under which it was originally chartered and the requirements of
the Commissioner and file proof of such compliance with the Commissioner.
3. Every application for permission to convert to a credit union
chartered in accordance with the laws of this state must be accompanied
by an application fee in an amount prescribed by regulation of the
Commissioner. The applicant shall also pay such additional expenses
incurred in the process of investigation as the Commissioner deems
necessary. All money received by the Commissioner pursuant to this
subsection must be placed in the Investigative Account created by NRS
232.545 .
(Added to NRS by 1975, 393; A 1983, 1329, 1838; 1987, 2022; 1991,
1818)
DISSOLUTION AND LIQUIDATION
1. At a meeting called to consider dissolution, the membership may
vote to dissolve a credit union if notice of the meeting is mailed to the
members at least 10 days prior thereto. Any member who is not present at
the meeting may, within 20 days after the meeting, vote by signing a form
furnished by the Division and filing the form with the secretary of the
credit union. An affirmative vote of a majority of the members who vote
at the meeting or by filing the form is required to dissolve the credit
union.
2. If the members vote to dissolve, the credit union shall, except
for the purpose of liquidation, cease its business operations immediately.
3. The chairman shall, within 5 days after an affirmative vote to
dissolve the credit union, notify the Division by mail of the credit
union’s intention to liquidate and include with the notice a list of the
names and addresses of the directors and officers.
(Added to NRS by 1975, 391; A 1983, 2020)
1. If the Division determines that any credit union organized
pursuant to the provisions of this chapter is bankrupt or insolvent, has
willfully violated the provisions of this chapter or is operating in an
unsafe or unsound manner, the Division may, if emergency action is
required to protect the assets of the members, issue an order temporarily
suspending the credit union’s operations. Reasonable notice of the
suspension of operations and of the impending hearing shall be given to
the board. Operations of the credit union shall cease upon receipt of
notice from the Division.
2. At the scheduled hearing, the board shall, if it desires to
continue operations, submit a plan of corrective actions. If the board
desires, it may, prior to the hearing, request the Commissioner to
declare the credit union insolvent and appoint a liquidating agent.
3. If the credit union is not represented at the scheduled hearing
or the Division rejects the credit union’s plan to continue operations,
the Commissioner may appoint a liquidating agent and dissolve the credit
union.
(Added to NRS by 1975, 391; A 1977, 96)
If a credit
union is closed because of bankruptcy or insolvency, the Commissioner may
appoint a liquidating agent.
(Added to NRS by 1975, 389; A 1981, 1814; 1983, 1836; 1985, 785;
1987, 2019)
1. A liquidating credit union shall continue in existence for the
purpose of discharging its debts, collecting and distributing its assets,
and doing any other acts required to wind up its business.
2. The board or, in the case of involuntary dissolution, the
liquidating agent, shall pay from the assets, the obligations of the
credit union in the following order:
(a) Expenses incidental to liquidation including any surety bond
that may be required.
(b) Any liability due to nonmembers.
(c) Deposits and savings club accounts.
Ê If any assets remain, they shall be distributed to the members
proportionately to the number of shares held by each member as of the
date dissolution was approved by the members or ordered by the
Commissioner.
3. As soon as the board or the liquidating agent determines that
all assets from which there is a reasonable expectancy of realization
have been liquidated and distributed as set forth in this section, he
shall execute a certificate of dissolution on a form provided by the
Division and shall file such form with the proper recording authority
within the county in which the credit union has its principal place of
business. After filing or recording, and indexing the original form shall
be forwarded to the Division and upon its receipt and filing such credit
union shall be officially dissolved.
(Added to NRS by 1975, 392)
CENTRAL CREDIT UNIONS
1. A central credit union may be organized and operated under the
provisions of this chapter by any three credit unions incorporated within
this state. A central credit union is subject to all provisions not
inconsistent with this section and shall use the term “central” in its
official name.
2. A central credit union has all the rights and powers of any
other credit union organized under this chapter and, in addition, a
central credit union may:
(a) Make loans to other credit unions;
(b) Purchase shares and make deposits in other credit unions;
(c) Obtain the assets and liabilities of any credit union operating
in this state which enters into liquidation;
(d) Invest in and grant loans to associations of credit unions or
organizations chartered to provide exclusive service to credit unions; and
(e) Borrow money from any source and issue notes or debentures.
(Added to NRS by 1975, 393; A 1977, 891)
The membership for a central credit union
may consist of:
1. Credit unions;
2. The Nevada Credit Union League, Inc.; and
3. Organizations affiliated with the Nevada Credit Union League,
Inc.
(Added to NRS by 1975, 393; A 1977, 892)
1. The board of each credit union that becomes a member of a
central credit union shall designate one person to be its voting
representative in the central credit union.
2. The voting representative of a member credit union is eligible
to hold office in the central credit union.
(Added to NRS by 1975, 393; A 1977, 892)
1. Before the payment of any dividend by a central credit union, a
regular reserve against loan losses shall be set aside according to the
following schedule:
(a) Until the regular reserve equals 5 percent of the outstanding
loans and risk assets, 2 percent of the gross earnings shall be withheld.
(b) Whenever the regular reserve falls below 5 percent of the
outstanding loans and risk assets it shall be replenished in accordance
with the formula set forth in paragraph (a).
2. No other reserves need be maintained by the central credit
union.
(Added to NRS by 1977, 889)
PENALTIES
1. Any person, except a credit union organized under the
provisions of this chapter or the Nevada Credit Union League, which uses
a name or title containing the words “credit union” or any derivation
thereof or representing themselves in their advertising or otherwise as
conducting business as a credit union is guilty of a gross misdemeanor.
2. Any person who maliciously and knowingly spreads false reports
about the management or finances of any credit union is guilty of a gross
misdemeanor.
(Added to NRS by 1975, 394)
In addition to any other remedy
or penalty, the Commissioner may impose an administrative fine of not
more than $10,000 upon a person who:
1. Without a license, conducts any business or activity for which
a license is required pursuant to the provisions of this chapter; or
2. Violates any provision of this chapter or any regulation
adopted pursuant thereto.
(Added to NRS by 2005, 1890 )
